Lightsquared signs deal with AirTouch, creates its first MVNO

LightSquared added another name to its list of allies yesterday, with a wholesale agreement allowing AirTouch products to dabble in the world of wireless. The phone manufacturer, which makes telecom devices that work with voice, data and video, looks set to become the first newly created MVNO to use LightSquared's 4G goodness. Of course, all this is assuming that the nascent network actually gets off the ground. But now that it's supposedly solved that pesky GPS interference problem, what could possibly stop it?

AirTouch will launch bundled mobile services using the LightSquared network

RESTON, Va. and NEWPORT BEACH, Calif., September 26, 2011 – LightSquared™, a wholesale carrier building a nationwide wireless broadband network that will create consumer choice and drive industry innovation, has signed a wholesale agreement with AirTouch® Communications (OTCBB: ATCH), which develops telecommunications products that can converge various services including voice, data, video and even traditional landline.

Using the LightSquared network, AirTouch will offer its own branded wireless connectivity, opening up an important new revenue stream for the company. Consumers and businesses who purchase AirTouch products can now conveniently sign up for accompanying AirTouch wireless connectivity for those devices. AirTouch will also offer its devices through LightSquared's other wholesale partners.

AirTouch has a rich history of providing next generation high-performance, consumer friendly cellular cordless telephone technology and wireless signal amplification products to businesses and consumers. These include its cell@home, HomeConnex、UFO and FocalPoint products which are and will be sold through various channels.

LightSquared has now signed 15 partner agreements with companies that are eager to develop innovative mobile services, devices and applications on LightSquared's open network. AirTouch represents the first device manufacturer that will sell wireless connectivity over LightSquared's network combined with its communications devices.

"With LightSquared's wholesale-only business model, we can not only provide wireless connectivity to existing customers, but we are now able to tap new revenue streams while generating additional value for our customers and shareholders," said Hide Kanakubo, CEO, AirTouch. "This agreement will help us energize our business model to deliver a much broader range of innovative new products and services."

"We're proud to add AirTouch to our increasingly diverse partner portfolio," said Sanjiv Ahuja, chairman and chief executive officer of LightSquared. "In addition to cellular voice and data products, AirTouch can now add a new source of revenue by delivering a bundled wireless offering to their customers. This represents the true spirit of LightSquared's wholesale-only business model, and we look forward to AirTouch using our network to develop next-generation products and services, and forge new strategic alliances."